H.I.G. Capital Portfolio Company Merges with Constellation
H.I.G. Capital announced its portfolio company Comverge, a leading provider of demand response, energy efficiency and customer engagement solutions, together with Constellation, a competitive retail supplier of power, natural gas and energy products, combined demand response businesses serving commercial & industrial customers. The combined business, named CPower, is headquartered in Baltimore, and will operate as a new, standalone company independent from Comverge and Constellation. CPower, like its predecessor companies, will continue to deliver a full spectrum of demand response offerings to C&I customers across the U.S. The combination creates one of the largest demand response companies in North America.
H.I.G. holds a majority ownership interest in CPower, and Constellation holds a minority ownership interest and will remain an important business partner to CPower. Former Comverge CFO John Horton will serve as President and CEO of CPower.
“Demand response is a proven resource that helps contribute to a more reliable grid, and we are significantly increasing our investment in this business to make sure we remain a strong force in the industry and continue to exceed our customers’ expectations,” said Horton. “The leaders of CPower have helped thousands of C&I customers optimize their participation in demand response programs, providing them with a new source of revenue that can have a significant impact on their bottom line.”
“This transaction creates a market leading company in the demand response industry with scale, differentiated capabilities and a solid foundation for growth,” said Brian Schwartz, an executive managing director of H.I.G. “We look forward to partnering with the CPower management team as they grow the business and continue to provide excellent service to our customers.”
Comverge provides an integrated set of demand response, energy efficiency and customer engagement solutions that enable electric utilities to ensure grid reliability, lower energy costs, meet regulatory demands and enhance the customer experience.
Constellation is a competitive retail supplier of power, natural gas and energy products and services for homes and businesses across the continental U.S.